Series 28: Limitations On Withdrawal Of Equity Capital

Limitations on Withdrawal of Equity Capital

The SEC restricts the withdrawal of equity capital if it will exceed certain limits. This withdrawal of funds may not exceed an amount that would cause:

• • The broker-dealer’s net capital to fall below 120% of its required net capital
• • The broker-dealer’s net capital to be less than 25% of haircut deductions (except with the SEC’s prior approval)
• • The broker-dealer’s, subs